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Amazon FBA fees in the UK

Referral, fulfilment, storage and the selling plan added up honestly — why case size beats fee negotiation, and the break-even price to check before you list.

Referral, fulfilment, storage and the plan, added up honestly — plus the break-even price nobody checks.

Amazon FBA charges a referral fee as a percentage of the sale price (typically 8–15% by category for grocery-adjacent products), a fulfilment fee per unit shipped based on size and weight, monthly storage per unit, and a monthly selling plan whether you sell or not. Individually each fee looks survivable. Together they routinely take 35–50% of the consumer price before your own cost of goods enters the conversation.

The arithmetic order matters: VAT comes off the sale price first, then the referral fee is charged, then fulfilment and storage are deducted per unit, then the plan amortises across your monthly volume. What is left has to cover cost of goods, inbound freight, and margin — in that order.

Why case size changes everything

If one listing is one consumer unit, fulfilment and storage are charged on every unit. If one listing is a case of 24, the same fees are charged once per case and spread 24 ways. For low-priced FMCG this is frequently the difference between a channel that works and one that pays Amazon for the privilege — a £3.15 fulfilment fee is unsurvivable on a £1.50 single and trivial on a £30 case.

The corollary: your case configuration is a bigger pricing lever on Amazon than any fee negotiation you will ever have there, because there is no fee negotiation. Amazon does not negotiate. Your case size does.

The break-even price

Every product has a floor price on Amazon below which the listing pays you nothing: (cost of goods + inbound freight + fulfilment + storage + plan-per-unit) ÷ (1 − referral rate), grossed back up for VAT. Price below it and every sale loses money — volume just makes it worse. Compute it before you list, and again every time Amazon updates its fee schedule, which it does at least annually.

Asked a lot

How much does Amazon FBA take in the UK?

Typically 35–50% of the consumer price for low-priced FMCG once referral, fulfilment, storage and the selling plan are added together — before your cost of goods. Exact fees depend on category, size tier and weight; check Amazon's current fee schedule and re-check it yearly.

What is the Amazon referral fee for grocery?

Grocery & Gourmet referral fees in the UK have generally been in the 8–15% band depending on price, but the schedule changes — treat any published figure as dated and verify against Amazon's own fee page before pricing.

Is it better to sell singles or multipacks on FBA?

For low-priced FMCG, multipacks or cases almost always work better: fulfilment and storage are charged per shipment, so a 24-unit case spreads them 24 ways. Selling £1.50 singles through FBA rarely survives the fulfilment fee.

Do I pay VAT on Amazon fees?

Amazon's fees are subject to VAT treatment that depends on your registration status, and the sale price itself includes VAT that is not yours to keep. Model the sale price ex-VAT and treat fee VAT as a cash-flow question for your accountant — but never read the headline consumer price as revenue.

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